Voltabox AG — Investor Presentation 2020

Jun 18, 2020

Analyst / Investor Presentation

Quirin Champions Conference June 18, 2020

Responding to the Pandemic

From the middle of March, significant effects on

• current series deliveries (e.g. import stop of battery systems for trolley buses in Italy)
• material procurement due to blocked supply chains
• customer call-offs (e.g. intralogistics)
• R&D projects and planned series starts due to order cancellations

Voltabox responded by applying for short-time work for large parts of the Group

Almost complete stoppage of production at the Delbrück and Austin, Texas, plants (only few service activities in production)

Significant impact on forecast revenue for 2020; earnings affected due to underfunding of cost base (but according to conservative planning no liquidity issues)

Status Quo in Operational Business

End of short-time work at the end of June

Gradual ramp-up of production

Increasing signals from customers to resume supplies

Coping with the effects of the crisis by using own resources – no burdening of the balance sheet and liability structure through KfW loans

Time used for setting up the organization autonomously

Preparations Done for the Post-Pandemic Era

Fundamental reorganisation of the Group!

Comprehensive Adjustments of Balance Sheet

Reason

Significantly deteriorated business prospects in various markets, due in part to the COVID 19 pandemic; increasingly significant difference between equity and market capitalization

Effect

• Maximum transparency for capital market and potential future (anchor) shareholders
• Maximum reduction of balance sheet risks

Cluster	Value Adjustment	Explanation
US Business	€ 19.0m	 Intangible assets from acquired companies, inventories
Deteriorated business prospects	€ 65.0m	 Inventories, intangible assets for development work and adjustments of assets from long-term development contracts, intangible assets from rights of use and acquired companies, accrual for impending losses
Reversal of Voltamotion sale	€ 16.6m	 Effect from reversal of sale of rights of use due to COVID-19 pandemic
Total	€ 100.6m

Postponement of Annual Report

• paragon publication on March 3, 2020 regarding intention to sell financial interest Voltabox Cause
• Reason Corona influence on business development in 2020 Effects on consolidated financial statement under intensive examination of the auditor

Emergence of the corona crisis and increasing impact on Voltabox business

according to IDW (Institute of Public Auditors in Germany) to be taken into account in the management report of the 2019 financial statement

e.g. because of extraordinary impairment test

Postponement of audited consolidated financial statement

Effect Best possible transparency for capital market

2019 Preliminary Results

€ 70m to € 80^m

$$
-8\% \text{ to } -9\%
$$

Forecast 2019(e) as of August 12, 2019

€ 56.6^m Reversal of Voltamotion sale

One-off adjustments of assets according to still unprofitable US subsidiary and deteriorated business prospects

Preliminary results fiscal year 2019 as of May 8, 2020

Expansion of the Management Board

• studied mechanical engineering at RWTH Aachen University and earned his doctorate there
• worked for more than ten years at Hella KGaA, ultimately as head of the unit Operational Excellence

• established REFA specialist

• holds an Executive Master of Business Administration (MBA) and a Bachelor of Laws (LL.B.) degree from the University of Münster

• former corporate account manager at a large savings bank and project manager at PwC (responsible for auditing large, capital market-oriented companies and advised clients on basic accounting issues in accordance with IFRS and HGB); expert in international accounting

Preparations Done for the Post-Pandemic Era

• Standardization selectively enhanced

• Further strengthening of expertise in the area of functional safety, which is important for approvals

• portfolio

NMC 103V water-cooled

* Excerpt from product portfolio.

Preparations Done for the Post-Pandemic Era

• Improvements through omissions of cost-intensive materials and components - e.g. reduction of screws or of cross sections of aluminium strands
• Optimization of the module concepts according to the requirements of the applications – e.g. cheaper housings
• New housing concepts can still be produced on existing lines > time advantage in assembly due to fewer components
• Standardization, where possible, expanded e.g. battery management systems
• Adjustment of charging cycles according to application

Enlargement of the modular kit and expansion of the solution portfolio, more strongly oriented towards customer needs, cost leadership enabled!

Sales Process Initiated by the Majority Owner

• Options currently being weighed by the majority shareholder paragon range from a partial sale to the sale of the entire stake
• Ever fewer overlaps between both company's business models
• Preferred buyer: well-capitalized, strategically interested owner(s) that has (have) a strong international footprint (e.g. industrial company) in order to scale the business of Voltabox globally and thus exploit its full growth potential
• Current status: several interested companies, numerous conducted preliminary talks, capital market recovery bolsters the expected achievement of our sales targets

General Outlook

Key Achievements Made & Objectives for 2020

Disclaimer

This presentation is given to you in strict confidence. By attending the presentation, you agree that no part of this presentation or disclaimer may be disclosed, distributed or reproduced to any third party without the consent of Voltabox AG ("Voltabox").

This presentation is being provided for the sole purpose of providing the recipients with background information about Voltabox's business. This presentation, including the information contained in this disclaimer, does not constitute an offer, invitation or recommendation to subscribe for or purchase any security and neither the presentation, disclaimer nor anything contained in them forms the basis of any contract or commitment. This presentation does not purport to summarize all information that an investor should consider when making an investment decision. It should be read in conjunction with Voltabox's other continuous disclosure announcements. Before making an investment decision you should consider whether it is suitable for you in light of your own investment profile and objectives and financial circumstances and the merits and risk involved.

No representation, express or implied, is made as to the fairness, accuracy, completeness or correctness of information, opinions and conclusions contained in this presentation, including the accuracy, likelihood of achievement or reasonableness of any forecasts, prospects, returns or statements in relation to future matters contained in the presentation ("forward-looking statements"). Such forward-looking statements are by their nature subject to significant uncertainties and contingencies and are based on a number of estimates and assumptions that are subject to change (and in many cases are outside the control of Voltabox and its Directors) which may cause the actual results or performance of Voltabox to be materially different from any future results or performance expressed or implied by such forward-looking statements. Forward looking statements are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance.

To the maximum extent permitted by law, neither Voltabox nor its related corporations, directors, employees or agents, nor any other person, accepts any liability, including, without limitation, any liability arising from fault or negligence, for any loss arising from the use of this presentation or its contents or otherwise arising in connection with it.

You represent and confirm by attending and/or retaining this presentation, that you accept the above conditions.

Company Contact

Voltabox AG Stefan Westemeyer Investor Relations Artegastraße 1 D-33129 Delbrück Phone: +49 (0) 5250 9930-685 Email: investor@voltabox.ag

Back-up

Voltabox Corporate Development

Location Overview

E-Mobility Pure Play

Modular Development & Production Approach*

NMC 24V standard NMC 24V air-cooled NMC 24V water-cooled NMC 48V standard NMC 48V air-cooled NMC 48V water-cooled

NMC 103V water-cooled

NMC 36V standard NMC 40V standard NMC 40V water-cooled LTO 48V standard LTO 83V standard

2x8 LFP round cell module

LTO 83V long LFP 24V standard NMC 48V Pouch 3x8 LFP round cell module 4x9 LFP round cell module

* Excerpt from product portfolio.

Production Steps - From the Cell to the Complete System

TCO-Advantages Driving Substitution of Lead-Acid by Li-Ion

Voltabox is Cell Agnostic!

Lithium Iron Phosphate (LFP)

• Nominal cell voltage: 3.2 V to 3.3 V
• No risk of thermal runaway (in case of an accident)
• High cycle stability of up to 4,000 cycles at 80% DoD
• Large operating temperature range -20/+ 55 °c
• High energy density (125 Wh/kg and 292 Wh/l)
• Using only a small portion of rare earths

Nickel Manganese Cobalt (NMC)

• Nominal cell voltage: 3.6 V to 3.7 V
• High cycle stability of at least 6,000 cycles at 80% DoD
• Great operating temperature range of -30/+ 60 °C
• High energy density (136 230 Wh/kg and at least 309 Wh/l)

Lithium Titanium Oxide (LTO)

• Nominal cell voltage: 2.3 V
• Highest cycle stability of up to 30,000 cycles at 80% DoD
• High level of safety thanks to LTO anode
• Great operating temperature range of -30/+ 55 °C
• Energy density of 96 Wh/kg or 202 Wh/l
• Great SoC range useable with the highest performances

Nickel Cobalt Aluminum Oxide (NCA)

• Nominal cell voltage: 3.6 3.7 V (vs. graphite)
• Very wide operating temperature range of -20 /+75°C
• High cycle stability of up to 1,500 cycles at 80-70% DoD
• High energy density (140 280 Wh/kg and 300 - 590 Wh/L)
• Currently being tested or upscaled by many cell manufacturers

Source: IDTechEx.

Distinguished Cell Expertise in the Group

Cell Supplier Base (Selection)

Dr. Fabian Wohde Cell Expert at Voltabox

"

On paper, lithium-ion technology has been convincing right from the start. However, after we have installed numerous Li-Ion-based systems in the market over the past few months, the strengths of the cell chemistries we use are also evident in practice. Lithium-ion battery systems impress with their flexibility, high charging rates, long service life and massive advantages in terms of total cost of ownership. "

Li-Ion Battery System Supplier for Defying Applications

• Voltabox is a pioneer in the electrification of industrial applications. In 2018, the Group expanded its solution portfolio in order to open up further mass markets in the future.
• Mindset focus on applications (authentic added value solutions)
• Exceptional integration power (experience in automotive interfaces)
• Superior realization processes (short time-to-market with modular kit)

Installation of Energy by End Markets

USPs of Voltabox

Countermeasures for Optimizing the Cost Structure

1	Personnel cost adjustments (Delbrück)	Large reduction of annual personnel costs and reduction of temporary workers - mainly effective from 01.01.2020
2	Personnel cost adjustments (Austin)	Reduction of personnel costs in 2019 already effective today
3	Sharpening of development focus	Focus on 38 projects (including 23 projects with higher priority) with stringent controlling

Savings on fixed costs of 30 % in 2020

Material savings through double

size technology Especially cost optimization of battery module for new cells of several manufacturers

New Planning Process

No impact on total order backlog – changed conservative approach shall allow more realistic estimation of future revenue recognition

related ramp-up effects from the industrialization of projects

will also be evaluated

Ongoing Top-Line Growth at a Negative Profitability

Key Developments of Assets

• Increase of noncurrent assets by € 23.3m
• Property, plant equipment € +22.3m IFRS16 (Leasing) effect
• Other assets € -3.1m Reclassification of noncurrent rental prepayments in property, plant and equipment due to IFRS16 & recognition of contractual assets
• Deferred tax assets € +2.1m Recognition of loss carryforwards
• Decrease of current assets by € 12.8m
• Inventories € +39.6m supply of production material, which will be used primarily in 2020 for planned projects
• Trade receivables € -19.3m repayments from important customer
• Liquid funds € -24.9m expansion of operational business activities, prefinancing of production and spatial expansion of US site
• Receivables from related parties € -11.3m Repayment from parent company

Assets in € million

Key Developments of Equity and Liabilities

• Increase of noncurrent provisions and liabilities by € 14.1m
• Noncurrent loans € +0.8m
• Noncurrent liabilities from Finance Lease € +13.1m
• Increase of current provisions and liabilities by € 7.2m
• Trade payables € +7.6m
• Liabilities to related parties € 1.4m
• Other current liabilities € -3.8m
• Decrease of equity by € 10.7m
• Equity ratio at 74.9 % (Dec. 31, 2018: 85.3 %)

	Sep. 30, 2019	Dec. 31, 2018
Equity	143,779	154,484
Subscribed capital	15,825	15,825
Capital reserve	127,992	127,992
Profit/loss carried forward	9,718	7,614
Consolidated net income	-9,943	2,579
Currency translation differences	187	474
Noncurrent provisions and liabilities	21,868	7,808
Noncurrent finance lease liabilities	13,147	17
Noncurrent loans	958	141
Deferred tax liabilities	7,763	7,650
Current provisions and liabilities	26,389	19,224
Current loans	3,535	3,539
Trade payables	16,881	9,257
Liabilities to related parties	1,910	557
	194,308 * As retrospectively amended in FY 2018 consolidated financials statements.	181,516

Cash Flow Statement 9M/2019

Operating Cash Flow increased by € 17.7m compared to prior year and characterized by countervailing effects

• Inventories increased again in the light of sourcing cells which will be used in the coming year in projects underway
• Trade receivables decreased significantly according to plan and will be further reduced until the end of the year

Market Entry in 2020 - Conversion of Diesel Buses

• Sales expectation in higher single-digit million range in 2020 strong increase in sales figures from 2021 according to e-troFit
• Newly validated cells at Voltabox are ideal for application (cost and functional benefits) - Voltabox as sole battery system supplier
• e-troFit battery module can also be used for intralogistics (less dependence on previous main cell supplier)

Energy Thought Flexible – Voltabox Mobile Power Units

• Voltafox are the new mobile energy storage devices from Voltabox - Portable lithium-ion battery system for a wide range of applications
• Voltabox uses its ready-developed and powerful forklift battery system for this purpose

• Optimum use for stock of prismatic NMC cells/modules (1. Generation)

• Various scalable designs and performance features possible

Characteristics

• LTE/3G/4G/GPS connectivity
• Remote control via Web-APP
• Proactive recommendations for exchange by providers
• Location determination, anti-theft protection

quirin Champions I June 18, 2020 Presentation to Investors/Analysts 35

Sales by Markets in 2020 (Original Planning)

• Continuation of the significant reduction in bulk Mobile Power Unit risk with regard to major customers in the intralogistics sector
• Focusing within the occupied markets and further development of standardized solutions allows more efficient development and shorter time-to-market
• New (sub-)sales markets planned in the following areas
• Public transport / buses (conversion of diesel buses)
• 5G network
• Mobile Power Unit (mobile battery storage for flexible use)
• Port and rail applications

Original Forecast for Fiscal Year 2020

Sales	Profitability	Cashflow	CAPEX
Revenue € 85m to € 100m	EBITDA margin about 15% EBIT margin 5% to 7%	FCF single digit positive	Investments about € 12.5m thereof about 70% capitalized development costs

Performance of Voltabox Share (VBX) since IPO